Total cumulative bank credit in the UAE surpassed 2.5 trillion dirhams in October, registering a monthly growth of 1.5% compared to the end of September.
According to the Central Bank of the UAE, this credit growth was fueled by an increase in both foreign credit of approximately 20 billion dirhams and domestic credit worth 16.5 billion dirhams. The rise in domestic credit was primarily driven by a 3.3% increase in public sector credit, along with a 1% rise in credit to financial and non-financial institutions, and a 0.5% monthly growth in private sector credit.
Moreover, UAE banks enhanced their assets, including certificates of deposit, reaching 5.208 trillion dirhams by the end of October, reflecting a 0.2% increase from September.
The report on monetary developments indicated that total bank deposits rose by 0.6% month-over-month to approximately 3.203 trillion dirhams in October, supported by a 1.4% increase in resident deposits, despite a decline in non-resident deposits.
Additionally, the report highlighted an expansion in the monetary base by around 0.4%, exceeding 836 billion dirhams in October, driven by an increase in currency in circulation, current accounts of banks and financial institutions, as well as overnight deposits with the Central Bank.